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A proposal from Republican leaders in the Kansas Senate would call for $300 million in tax increases to help close the gap in the state’s 2011 budget shortfall.
Senate President Steve Morris, R-Hugoton, and Vice President John Vratil, R-Leawood, released those plans during a news conference Friday at the Capitol.
Currently, revised figures show that the state is facing an approximately $460 million budget shortfall for the fiscal year that begins July 1.
While it was not touted as a budget plan, Vratil and Morris did indicate that there were measures currently in various committees that would help close the budget gap.
Those measures included:
• increasing tobacco and/or possibly increasing the alcohol tax;
• remove some sales tax exemptions;
• increase sales tax;
• implement a nursing home provider tax that would enable the state to access some additional federal funding.
The senators said they anticipated a bill on sales tax exemptions to come out of Ways and Means sometime next week and were hoping to see the Assessment and Taxation Committee move on its bills soon.
After Vratil and Morris made their statement, Kansas Gov. Mark Parkinson said that he would reinstate Kansas’ estate tax and its corporate franchise tax to help “bolster the state budget.”
Parkinson also said phasing out property taxes on business machinery and equipment was a mistake.
Opponents of tax increases were quick to respond on Friday. Chris McCalla, legislative director for the International Premium Cigar and Pipe Retailers Association said that there is significant irony in the fact that the state bans smoking and considers raising taxes on tobacco.
“It would be funny if it weren’t so serious. Two wrongs don’t make a right,” McCalla said. “Legislated smoking bans violate the personal rights of everyone – smokers and non-smokers, alike - and everyone knows that increased taxes on tobacco products result in lower tax revenues because they encourage illegal sales of bootlegged tobacco products. People also cross borders and use the Internet to purchase their tobacco products which eliminates all tobacco taxes from the state’s coffers.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
A proposal from Republican leaders in the Kansas Senate would call for $300 million in tax increases to help close the gap in the state’s 2011 budget shortfall.
Senate President Steve Morris, R-Hugoton, and Vice President John Vratil, R-Leawood, released those plans during a news conference Friday at the Capitol.
Currently, revised figures show that the state is facing an approximately $460 million budget shortfall for the fiscal year that begins July 1.
While it was not touted as a budget plan, Vratil and Morris did indicate that there were measures currently in various committees that would help close the budget gap.
Those measures included:
• increasing tobacco and/or possibly increasing the alcohol tax;
• remove some sales tax exemptions;
• increase sales tax;
• implement a nursing home provider tax that would enable the state to access some additional federal funding.
The senators said they anticipated a bill on sales tax exemptions to come out of Ways and Means sometime next week and were hoping to see the Assessment and Taxation Committee move on its bills soon.
After Vratil and Morris made their statement, Kansas Gov. Mark Parkinson said that he would reinstate Kansas’ estate tax and its corporate franchise tax to help “bolster the state budget.”
Parkinson also said phasing out property taxes on business machinery and equipment was a mistake.
Opponents of tax increases were quick to respond on Friday. Chris McCalla, legislative director for the International Premium Cigar and Pipe Retailers Association said that there is significant irony in the fact that the state bans smoking and considers raising taxes on tobacco.
“It would be funny if it weren’t so serious. Two wrongs don’t make a right,” McCalla said. “Legislated smoking bans violate the personal rights of everyone – smokers and non-smokers, alike - and everyone knows that increased taxes on tobacco products result in lower tax revenues because they encourage illegal sales of bootlegged tobacco products. People also cross borders and use the Internet to purchase their tobacco products which eliminates all tobacco taxes from the state’s coffers.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
